CHART OF THE DAY: Can The Fed Eliminate Economic Gravity?

As we close out Q2 of 2019, a Quad 3 in Q2 week it was. I know, I know… lots of people would prefer if we don’t do the Quad 4 in Q3 summer-thing. I guess a credible market case is being made that the Fed can eliminate that type of economic gravity.

What does a successful Quad 3 rate-cutting Fed look like in macro market terms?

1. Down Dollar
2. Down Rates
3. Up Oil, Commodities, and “Stocks”

Unlike in May (and during Quad 4 in Q4 of 2018), that’s what we had last week with markets pricing in a 100% probability of a PE Powell summer-time rate cut in July.